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business
•
revIew
december 1967
FEDERAL RESERVE
BANK OF DALLAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
contents
the oil industry
during 1967 . . ... ... ........ ... ..... . . . . .. .
3
pers pective on
southwestern agriculture
7
district highlights
. . . . .. . . .. .. ... . . .... . . ...
11
the oil industry
dUl-ing 1967
This year has been a memorable one for the
petroleum industry. At the beginning of 1967,
it would have been difficult to predict that gains
achieved this year would surpass the advances
made in 1966. That year, which had been
marked by increases in industrial production
associated with the Viet-Nam war and greater
demands by consumers and businesses, was
one of special growth for the petroleum industry. For certain oil products, output this year
has surpassed last year's performance. The
overriding event boosting oil demand - and,
also, the major factor in advances in profitswas the short-lived Middle Eastern war in June
and the worldwide dislocations in oil supply
that followed. When the war broke out, it appeared that Middle Eastern oil supplies to
Europe would be critically curtailed over an
extended period of time. 1
In spite of the problems created by the shutdown of many Arab oil facilities for a short
period and by the concomitant closure of the
Suez Canal, the coordinated efforts of the oil
industry and Federal and state governments
Were successful in redirecting American oil
?Iovements. In meeting the crisis, the AmerIcan petroleum industry increased production
of crude oil to counterbalance the reduction in
imports and the necessary expansion in exports
of crude oil to Europe and Canada.
Demand for all petroleum products in the
United States during the first three quarters of
--
: A more detailed treatment of the impact of the
~Iddle East conflict upon the petroleum industry in
lle l!nited States and the Southwest, in particular, is
PrOVided in the article entitled "Summer 1967 - Oil
~nd .the Middle East" in the October 1967 Business
eVlew of this Bank.
the year rose 4.2 percent over the same period
in 1966. The rise did not match the one for
last year but was a slightly larger percentage
increase than at the corresponding time in
1965. Among the refined products, jet fuel
showed the largest gain by rising 21 percent.
The unusual upsurge in jet fuel consumption
this year as compared with 1966 is attributed
to the lengthy airline strike during the summer
of 1966, which inhibited advances in jet fuel
consumption for that year.
Demand for residual fuel oil, which is used
extensively for industrial purposes, registered
an increase of 4.3 percent for the first 9 months
of 1967, although this rate of increase is below
that for either of the previous 2 years. The
slower pace of industrial production this year
is responsible for the slower growth of residual
oil consumption. The demand for distillate
oils, which are used primarily for diesel engines and space heating, gained 3.0 percent,
ADVANCES IN OIL DEMAND
UNITED STATES
ALL OILS
GASOLINE
DISTILLATE
FUEL OIL
RESIDUAL
FUEL OIL
JET FUEL
o
5
10
15
20
25
PERCENT INCREASE, JANUARY - SEPTEMBER
SOURCES : American Pelroloum In,tllul • •
U.S. Burelu 0' Min ...
business review/december 1967
3
or somewhat more than was recorded last year;
and the demand for gasoline increased 2.6
percent.
As in the case of many products, petroleum
experiences seasonal variations in demand. For
instance, cold winter weather, especially in the
Northern States, creates a strong demand for
heating oils; and vacation driving during the
summer stimulates the demand for gasoline. As
the winter of 1967-68 approached, there was a
distinct possibility that demand would outstrip
the supply of heating oils in the Northeast, partially as a result of the shortage of tankers and
the concurrently higher shipping rates created
by the Middle East crisis. Consequently, distributors of heating oils in the Northeast claimed
that the higher costs of transporting heating
oils threatened to price them out of the market.
Another important factor which contributed to
the shortage of heating oil was that refiners had
been emphasizing the production of higherprofit items, such as jet fuel, gasoline, and
diesel oil. Moreover, many industrial users have
been mixing heating and residual oils in order
to conform to new antipollution laws.
The apparently simple solution of raising
prices of heating oils posed the problem that
oil might lose some of its position in the space
heating market to electricity or natural gas. Distributors of petroleum products in the Northeast, along with spokesmen for consumers,
called for an increase in the importation of
heating oils, but producer groups felt that such
action would endanger the domestic industry.
During the fourth quarter, demand for all
petroleum products will probably rise 3 to 4
percent over a year earlier, according to American Petroleum Institute estimates. Jet fuel may
increase over 12 percent, with most of the gain
being accounted for by the kerosene type, which
is used primarily by commercial aviation. Gasoline is forecast to increase by 3 percent; but
distillate, used for space heating, is expected to
rise only nominally.
4
CRUDE OIL FLUCTUATIONS
UNITED STATES
STOCKS
PRODUCTION
MILLIONS OF BARRELS
THOUSANDS OF BARRELS DAILY
9.600
CRUDE OIL PRODUCTION
p Pnliminary.
e .. Estimated .
SOURCES: American Pelroleum Institutt.
U.S. Bureau of Mines.
Federa l Reserve Blink D.lla •.
0'
However, during the fourth quarter, efforts
are being made to increase the output of distillate oils, which are in short supply for winter
heating needs. It is anticipated that kerosen etype products may be sacrificed in order to produce more distillate; this development could, in
turn, create a shortage of kerosene-type jet fuel
at a time when demand is predicted to rise. As
a result of the high level of refinery runs which
is being maintained in order to obtain more
specific products (such as distillate and jet
fuels), gasoline is also being produced; and
there will probably be higher inventories of
tbis product, tbe demand for which is growing
less rapidly. Generally speaking, the fourth
quarter will be a period of growth for the
industry, as were the first three quarters.
On the supply side, oil producers met the
Middle East crisis by greatly increasing outp~t.
The needs of the United States were fulfilled 10
spite of the fact that crude oil imports virtually
ceased and crude oil exports to Europe and
eastern Canada rose dramatically. Before the
June crisis, the supply of petroleum products,
especially crude oil, was running ahead of market requirements. In March, crude oil inventories began to look excessive in relation to
demand; in the subsequent 2 months, they continued to climb. Stocks of crude oil on hand
in the United States at the end of May reached
269 million barrels, which is an all-time high.
With the advent of the Middle East crisis early
in June, inventories began to fall.
During the first 9 months of 1967, crude oil
production advanced 6.5 percent over a year
earlier; approximately 3 percent of the increase
represented additional oil produced because of
the Middle Eastern war. Nationally, crude oil
rUns to refinery stills were 3 percent ahead of
PETROLEUM OPERATIONS
ELEVENTH FEDERAL RESERVE DISTRICT
COMPLETIONS
PRODUCTION AND RUNS
THOUSANOS OF BARRELS DAilY
1966
P"Prelimin ary.
O"bUm . ltld.
SOURCES: Am oriQa n Petrol eum Inltilut o.
l.tu> WI lUId Il.u .IJuwl.aJ .
U.S. Buro au 01 Min ...
Feder al R, aerve SInk of Oall".
NUMBER OF WELLS
1967
a year ago. In the Eleventh District, the advance in crude oil production was somewhat
below the national average, but there was a
slightly greater rise in runs to refinery stills.
Output of crude oil in the Eleventh District
was high early in the year, but production was
eased in the spring as crude oil inventories rose.
However, the threat of a worldwide oil shortage
provided the impetus for increased output; and
the production record established in July was
broken again in August, when 3.9 million barrels per day were produced and output was 15
percent higher than a year earlier. Regulatory
authorities successively raised permissible crude
oil production in various areas of the District
during the summer months. Early in September,
crude oil production in the Southwest began to
ease as the threat of an oil shortage abated.
District crude oil runs to refinery stills were not
greatly affected by the oil crisis, nor was the
composition of the product mix altered. Rather,
the principal effect on the Southwest was the
rapid expansion in crude oil output and sales
during the summer.
During 1967, the pattern of imports and
exports of petroleum products has differed
greatly from any other year in the present
decade. Through May, imports of crude oil, at
1,232,000 barrels per day, eased almost 2 percent from the previous year; and imports of
residual fuel oil (another large petroleum import) were 10 percent higher than a year earlier.
Exports of crude oil were virtually nil, as they
had been for years. However, the crisis in the
summer changed the situation drastically. According to the American Petroleum Institute,
exports of crude oil in July and August soared
to 271,000 barrels per day. At the sanle time,
imports of crude oil declined substantially.
Crude oil was exported by U.S. producers to refineries in Europe and eastern Canada to meet
their deficits in oil imports, normally obtained
from the Mideast. Non-Arab sources of U.S.
imports, such as Venezuelan crude oil, were
business review/december 1967
5
WHOLESALE PETROLEUM PRICES
UNITED STATES
PERCENT
(1957- 59=100)
105 r.=================~==~~~~
101
99
97
1966
1967
SOURCE: U.S. Departm ent 01 Labor.
diverted to Europe; thus, the United States had
virtually no crude oil imports during the summer of 1967.
Drilling activity has decreased again during
1967, reflecting a continuance of the steady
decline in drilling that began in the late fifties.
Within the United States during the first 9
months of this year, both total wells drilled and
total footage drilled decreased about 15 percent
from a year earlier; and the number of wildcats,
or exploratory wells, completed declined almost
20 percent. In the Eleventh District, the number of wells drilled showed a larger decrease
than the national average. The reasons for the
continuing decline in domestic drilling include
steadily rising drilling costs in contrast to rela-
6
tively stable crude oil prices, increased exploratory activity abroad on the part of American
firms, improved recovery techniques, and the
wider spacing of wells.
Partially as a result of the oil crisis, wholesale prices for crude petroleum rose during the
summer months, with the increases being posted
primarily in the middle western areas of the
Nation. The rise is noteworthy because these
prices had been relatively stable during 1965
and most of 1966, although some increases occurred in the fourth quarter of last year. Refined product prices, which typically react more
erratically, also rose during the summer months.
Profits of 25 of the larger oil companies, as
reported by The Oil and Gas Journal, rose 7. 8
percent during the first 9 months of the year to
attain $3.8 billion. The major rise in earnings
occurred during the third quarter, when profits
increased 10.6 percent over the same period last
year. Heavy crude oil shipments by domestic
companies to Europe, Canada, and the American east coast were largely responsible for the
increase in third-quarter profits. Since the only
refined product showing any significant gain in
domestic demand during the quarter was jet
fuel, the expansion in profits is largely attributed
to rising crude oil output.
The large international oil companies did not
show as large an advance in profits because the
redirection of crude oil output meant higher
costs for crude oil, resulting fwm the higher
tanker rates and longer tanker voyages. Of the
larger oil, firms (both international and domestic), only a few showed decreases in profits for
the 9-month period, but a number of the firmS
showed percentage gains which were well in
excess of the composite gain of 7.8 percent.
Since the oil situation has returned to a more
normal state of affairs with the resumption of
the flow of Arab oil, it is anticipated that profi~
gains during the fourth quarter will not be as
great as those in the third quarter.
RAYNAL HAMMELTOI'l
perspective on
southwestel·n
agricultul·e
Total agricultural production in the Eleventh
District states of Arizona, Louisiana, New Mexico, Oklahoma, and Texas this year is expected
to be about the same as that in 1966. The
achievement of such a volume of output would
be quite noteworthy since total farm and ranch
production in these five southwestern states last
year matched that in 1961, the second highest
level of record. The all-time high in total agricultural output was attained in 1965.
An expansion in the production of livestock
and livestock products in 1967 has been principally responsible for maintaining total agricultural output in the five states at the previous
year's level, inasmuch as the volume of crops
is turning out to be slightly smaller. In 1966
also, livestock production rose, while crop output declined. Although total agricultural production is not expected to differ significantly
from its 1966 level, lower prices for both crops
and livestock are expected to reduce cash receipts from farm ing (including Government
payments) in 1967 to below the record total
of nearly $5.6 billion for the preceding year.
On balance, growing conditions in the SouthWest have not been as favorable during 1967 as
they were last year. A large part of the northWestern areas of the District failed to receive
adequate precipitation during the winter and
spring; and much of east, south, and central
l'exas was short of moisture during the lateSpring and summer months. An unseasonably
cOol spring in Arizona and New Mexico delaYed the planting and development of crops.
III the Lower Valley of Texas, Hurricane Beu-
lah and the consequent flooding sharply curtailed prospects for citrus fruits and fall and
winter vegetables. The widespread rains accompanying the hurricane were beneficial, however,
to ranges and pastures in sections outside the
immediate path of the storm.
Southwestern crop production in 1967 is
failing to equal last year's total despite the fact
that the harvested acreage of major crops is
about 6 percent larger. A significant factor in
the reduced crop output this year has been the
lower average yields for some of the more important crops. Production declines occurred for
cotton, wheat, citrus fruits, and many of the
spring-harvested grains - declines which were
not offset by the output increases for sorghum
grain, rice, hay, and various other crops.
Cotton production in the five southwestern
states this year is expected to total only about
4.1 million bales - 11 percent below that in
1966 and the smallest crop since 1946. This
decline follows the sharp decrease of 31 percent in cotton output in 1966, which was due
mainly to changes in the Government cotton
program. The acreage of cotton for harvest in
1967 is 5 percent smaller than last year. Part
of the reduction stems from a slight rise in the
proportion of cotton acreage diverted under the
Government cotton program this year.
In both 1966 and 1967, growers were required to divert 12.5 percent of their allotted
acreage in order to participate in the Government cotton programs, but producers were permitted to divert additional acreages up to a
maximum of 35 percent of their total allotted
business review/december 1967
7,
acreage. This year, 33 percent of the allotted
cotton acreage of cooperating growers in the
Southwest was diverted, as compared with 32
percent for the 1966 crop. Further, adverse
weather conditions reduced intended plantings
and caused the abandonment of some planted
acreage.
The lint yield per harvested acre in the
Southwest in 1967 is expected to average 404
pounds, down 6 percent from the previous year.
Except for Louisiana, where the average yield
is slightly higher, cotton yields in each of the
other southwestern states are showing declines,
ranging from 5 percent in Arizona to 17 percent in Oklahoma.
Gains in sorghum grain and rice output
helped to maintain crop production in
the Southwest-
[!!!]
COTTON
I-I
-I
WINTER WHEAT
SORGHUM GRAIN
F
RICE
HAY
PEANUTS
l}
CORN
I-I
BARLEY
OATS
..
- 60
~!!!!!~!!!!~~~
~
.. . ... . ..II
- 40
- 20
0
~
-'"
+20
PERCENT CHANGE. 1967' fROM 1966
Wheat production this year also failed to
meet expectations, as the output of the grain
was 14 percent less than in 1966 and was the
lowest since 1963. This experience contrasts
with that in the Nation, where wheat production
rose 19 percent above 1966 to reach a new
record. Acreage allotments for the 1967 crop
had been increased by 32 percent in view of a
sharp depletion in carry-over stocks, stemming
from large wheat shipments to food-deficit nations, notably India.
Southwestern wheat growers responded to
the increased allotments by seeding additional
acreage. Although insufficient moisture caused
abandonment of substantial acreages of wheat
in the Southwest, the acreage for harvest this
year was 9 percent above that in 1966. On the
other hand, yields per harvested acre, at 17.3
bushels, declined to the lowest level since the
drought-stricken period in the midfifties.
In contrast to cotton and wheat, both sorghum grain and rice are showing substantial
production increases this year. The 1967 sorghum grain crop is expected to exceed last
year's record total by 16 percent. This gain
reflects the impact of a 23-percent rise in the
acreage for harvest, since the average yield is
6 percent lower than in 1966. Grain sorghums,
8
'Iodlcaled November 1.
SOURCE: U.S. Oeporlmeol ., A"icullure.
relative to other small grains, have continued
to grow in importance as a cash crop. The
acreage of rice in Louisiana and Texas this year
totaled about the same as in the prior year, but
the average yield has risen to a new record;
and the rice crop this year may be 12 percent
larger than in 1966. The general uptrend in
rice yields during the past few years reflects
the adoption of new varieties and improved
soil and water management practices.
This season's promising citrus fruit crop was
severely reduced by Hurricane Beulah. Although official estimates were not available at
the time the damaging storm struck the Lower
Valley of Texas in the latter part of September,
trade sources had estimated that the State'S
crop would be about the same size as in the
1966-67 season. Subsequently, official estimates
have indicated that the total output of citruS
fruits in Arizona and Texas may be 29 percent
smaller than in the preceding season. A substantially larger citrus fruit crop in Arizonaespecially grapefruit - is offsetting some of the
impact of the small Texas crop. In Texa~,
grapefruit production in the 1967-68 season IS
expected to be 70 percent lower than in the
previous season; the orange crop is indicated to
be 57 percent smaller.
The output of livestock and livestock products in the Southwest has been increasing since
1957 - the year in which the drought of the
midfifties ended. In 1967, this upward trend
was maintained, and total livestock production
for the year is expected to rise about 3 percent
over the 1966 level. Production increases were
registered by each of the major livestock categories except lambs, wool, and mohair.
The cattle population in the five southwestern states at the beginning of 1967 was little
different from a year earlier, with a decline in
milk cattle numbers being more than offset by
a rise in the number of beef-type animals. With
little change in the calving rate, the calf crop
this year was only fractionally smaller than in
1966. Pasture conditions during 1967 have not
been particularly favorable; and there were
Scattered reports that reductions in herd numbers occurred during the summer in some localities of southern Texas. Even late this fall,
pasture conditions, although improved, were
still not as good as in the fall of 1966.
Despite the relative stability in the number
of cattle on farms and ranches, slaughter in the
SOuthwest, on a liveweight basis, is expected
~o total about 2 percent greater this year than
~n 1966. The gain in beef output during 1967
IS due to an increase in the average weight of
t~e animals being slaughtered. In part, the
higher average slaughter weights reflect the fact
that animals from feedlots represent a rising
proportion of the total slaughter each successive
year. Further, all of the 1967 gain in beef production is stemming from a rise in cattle slaughter, since calf slaughter is substantially lower.
The number of sheep shorn in the SouthWest during 1967 is estimated to be slightly
greater than during the previous year, but the
average weight per fleece is lower. Conse-
quently, wool growers will probably clip about
1 percent less wool this year than in 1966. The
number of breeding ewes was little changed
between 1966 and 1967, but the lambing rate
was sharply lower; and the lamb crop in the
District states may be about 8 percent smaller.
Although forage conditions during the summer were not particularly favorable in some
important dairying areas of the Southwest, milk
production this year is expected to exceed
slightly the volume produced in 1966. The
prospective higher output would be achieved
despite the fact that the number of milk cows
on farms totaled about 5 percent fewer. The
success dairymen have realized in increasing
production per cow through improved management practices and greater specialization during the past several years has made it possible
to market adequate milk supplies for a growing population with substantially fewer cows.
Poultry meat production has increased again,
with the percentage gain in turkey output exceeding by a considerable amount the rise in
the volume of broilers produced. Developments this year continue the trends under way
Output of most major livestock products
increased in the SouthwestCATTLE
WOOL
LAMBS
MOHAIR
MILK
BROILERS
EGGS
TURKEYS
- 20
o
+20
PERCENT CHANGE. 1967e FROM 1966
e- Partlyestimated.
SOURCES : U.S. Department of Agritulture .
Federat Roserve Bank of Dalla ••
business review/ december 1967
.9
FARM PRICES
PERCE NT \ 19 10 - 14~ 100)
RECEIVED
PAID
280rr==-===~~:=:::==~=~==::=il 360
°AII firm producl ••
SOURCE: U.S. Doparlme.t of Aerlcullur ••
for several years. The production of broilers has
shown consecutive year-to-year increases beginning in 1961, and growers have been stepping up turkey production since 1962. Rounding out the output gains for poultry products
in 1967 is the large rise in egg production.
Although total production of agricultural
commodities is expected to be about the same
as in 1966, gross farm income is not expected
to match last year's level. Prices received by
southwestern farmers for all farm products this
year have averaged well below those of a year
earlier. Consequently, cash receipts from farm
marketings for the first 9 months of 1967
trailed the corresponding period last year by
about 7 percent. Most of the decline in cash
receipts has been centered in those for crops.
Government payments are expected to contribute substantially to southwestern farm income (such payments totaled almost $700
million in 1966), but the payments this year
are not likely to be large enough to lift total
cash farm income to last year's level. The costs
of items used in farm production continued
their uptrend in 1967, and production expenses
remained at high levels. Thus, net farm income
probably will be below that of last year.
As southwestern farmers prepare for 1968,
certain changes in Government programs will
influence their management decisions. The 1968
cotton program is intended to stimulate production. The required diversion of cotton acreage has been reduced from 12.5 percent of the
regular allotment in effect in 1966 and 1967 to
5 percent next year; the payment rate for voluntarily diverting additional acreages has been
lowered, but the price-support payment rate
has been increased.
In view of the sharp rise in feed grain supplies this year, the feed grain program has been
modified to encourage farmers to reduce production in 1968. Cooperating farmers who divert feed grain acreage in excess of the mandatory 20 percent of their base acreage will
receive payments for additional diversion up
to a maximum of 50 percent of their base feed
grain acreage. No payments were made under
this year's program for diversion in excess of
the mandatory 20 percent.
Past production trends show that southwestern farmers have the resources to achieve a
high level of crop output in 1968 if weather
conditions are reasonably accommodating. The
size of basic breeding herds and the ample
supplies of feed grains in the Southwest provide the basis for a further expansion in meat
output. However, the downward drift that haS
occurred in prices for most livestock and livestock products may have a moderating influence on the plans of producers.
~--------------------------------------------------------------------------
new
par
"'anl~
10
The Chandler State Bank, Chandler, Texas, a nonmember bank located
in the territory served by the Head Office of the Federal Reserve Bank of
Dallas, was added to the Par List on its opening date, November 13, 1967. The
officers are: John K. Campbell, President; Scotty D. Cawthon, Executive Vice
President; and Phillip L. Hale, Cashier.
dist,-ict highlights
Nonagricultural wage and salary employment
in the five southwestern states, showing more
strength than seasonally expected, rose 0.2
percent to a total of 5,722,300 in October.
Employment in manufacturing exhibited substantial strength, while nonmanufacturing employment increased in line with normal expectations. Construction employment was strong
and advanced fractionally, rather than declining, as is usual at this time of the year. The
number of workers in services and government
did not display the usual seasonal strength, and
transportation and public utilities employment
registered a slight contraseasonal decline.
Total nonagricultural employment in the five
southwestern states in October was 3 percent
above the level in the same month in 1966.
Manufacturing employment rose less than overaU employment, but nonmanufacturing employIllent increased at a slightly faster rate. Mining
still showed substantial year-to-year weakness
as a result of the continuation of the strike in
the copper industries in Arizona and New Mexico. The number of construction workers reIllained slightly below the year-earlier level, but
service and government employment was significantly larger.
The seasonally adjusted Texas industrial prodUction index eased fractionally in October to
158.4 percent of its 1957-59 base. Little change
OCcurred in either total manufacturing or utilities. Mining production was down about 3 perCent from September, as the reduction in crude
petroleum output more than counterbalanced
a rise in the production of metal, stone, and
earth minerals.
burable goods production in October was
~early the same as in the prior month, with
Increases in only two sectors -lumber and
wood products and "other durable goods"
(mainly ordnance) - providing the major sustaining strength. Stone, clay, and glass products
and transportation equipment experienced appreciable production declines. Increases in the
manufacture of aircraft and parts restrained
the extent of the reduction in the output of
transportation equipment, which reflected the
severely curtailed production in the automobile
industry caused by labor disputes.
Nondurable goods manufacturing in Texas
was virtually unchanged from the prior month.
Rather large output reductions for textile mill
products, paper and allied products, and refined
petroleum products in October largely offset the
sizable gains for leather and leather products
and for "other nondurable goods."
The industrial production index for the State
in October 1967 was 6 percent ahead of the
same month last year. Year-to-year gains in
most sectors were moderate. Increases which
were substantially above the gain in the overall index were posted in three sectors: furniture and fixtures, transportation equipment,
and "other" durables (mainly ordnance). Pronounced output declines were recorded for
stone, clay, and glass products; primary metals;
and apparel and allied products. There was a
strong year-to-year gain in the production of
natural gas liquids.
Daily average production of crude oil declined 3.2 percent in the Eleventh District during October but was 3.8 percent higher than a
year ago. The monthly decline stemmed largely
from the resumption of Mideast output and the
accompanying cutback from U.S. sources but
was less than the decrease of 4.3 percent in the
Nation. The oil allowable in Texas for the
month was 42.8 percent of permissible pro-
business review/december 1967
11
duction, and the rate of 40.8 percent which was
set for November has been maintained for
December. Regulatory authorities have raised
the allowables for December in Louisiana and
southeastern New Mexico.
week period ranged from 7 percent to 23 percent over a year ago. District sales for the year
to date were 6 percent more than those in 1966.
Registrations of new passenger automobiles
in October showed a notable increase over September in each of four major market areas in
Texas; the increases ranged from 21 percent
in San Antonio to 49 percent in Houston. Combined registrations for the four markets were
40 percent higher than in September. Cumulative registrations through October were about
the same as in the first 10 months of 1966.
Both in the Eleventh District and in the Nation, commercial and industrial loans at the
weekly reporting commercial banks have been
relatively weak since midyear. The major reasons for this lack of strength appear to be the
desire by some firms to refinance part of their
bank debt into long-term bonds, the absence of
any significant increase in capital expenditures
and inventory accumulation, and the issuance
of commercial paper as a substitute for bank
loans.
Department store sales in the Eleventh District showed unusual strength during recent
weeks. In the 4 weeks ended November 18,
sales were 16 percent higher than in the comparable period of 1966. In the major metropolitan reporting areas of Dallas, EI Paso,
Houston, and San Antonio, increases for the 4-
Between July 5 and November 15, businesS
loans at the weekly reporting commercial banks
declined $15 million and $226 million, respectively, in the District and the Nation. In the
comparable 1966 period, these loans had advanced $70 million in the District and $1 .6
billion in the Nation.
THE PER JACOBSSON FOUNDATION LECTURES
"Economic Development - The Banking Aspects," a lecture by Mr. David
Rockefeller, President of the Chase Manhattan Bank, N.A., set the theme for the
fourth of the lecture series sponsored by
The Per J acobsson Foundation. Commentaries on the main topic were made by Mr.
Felipe Herrera, President of the InterAmerican Development Bank, and Mr.
Shigeo Horie, former Chairman of the
Board of Directors of The Bank of Tokyo,
Ltd. The Foundation lectures were presented on September 22, 1967, in Rio de
Janeiro, Brazil.
Copies of the 1967 Proceedings will be
made available to interested persons. As
in the past, requests for the free copies
(indicating the language desired) should be
addressed to:
THE PER JACOBSSON FOUNDATION
INTERNATIONAL MONETARY FuND BUILDING
19TH AND H STREETS, N.W.
WASHINGTON, D.C. 20431 U.S.A.
12
STATISlilCAL SUPPLEMENT
to the
BUSINESS REVIEW
December 1967
FEDERAL RESERVE BANK
OF DALLAS
CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS
RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve Di strict
Eleventh Federal Reserve District
(Average. of daily flgure s. In thousand. of dollars)
(In thousands of dollars)
Nov. 29,
1967
Oct. 25,
1967
Nov. 30,
1966
Net loans and discounts . ... . ..................
Valuation roserves . .. ....... ... ...•..........
Gross loans and discounts .. ...................
5,217,932
92,929
5,3 10,861
5,196,283
93,3 80
5,289,663
5,027,374
89,583
5,116,957
Commercial and industrial loans . ............•
2,523,784r
Item
ASSETS
2,568,243
2,518,015
certiflcotes of interest • ••............•....
Loans to brokers and dealers for
purchasing or carrylng l
96,945
99,979
80,968
U.S. Government securities . ....... •.. . ....
Other securities . ........................
Other loans for purchasing or carrying:
U.S. Government securities ... ......•......
Other securities . . ...... .................
12
64,743
13,012
58,135
463
36,991
1,259
331,792
676
328,471
848
328,474
Agricultural loans, excluding CCC
loons to nonbank flnancial Institutions:
Sales Anance, personal flnance, factors,
and other business credit companies ••••...
Other • .•••••..••••••.••.••••..••.•..••
168,121
279,977
497,244
149,422
5,892
542,047
226,909
263,945
504,397
158,226
5,943
538,508
151,235
254,892
468,729
171,299
5,265
513,422r
605,164
573,447
Total investments • .••.•. ..•.•. ....•..••....•.
2,557,600
2,56 1,048
2,255,061
Total U.S . Government securlttes • •• ....... ....
1,208,450
121 ,555
0
1,222,695
155,540
1,087,073
30,915
15,548
176,882
685,465
224,548
161,805
690,955
214,395
164,978
609,504
266,128
29,416
1,094,813
35,212
1,077,703
12,194
958,297
Treasury certiflcates of indebtedness . .••...•
Treasury notes and U.S. Government
bonds maturing t
Within 1 yoar •• •• ••• •. •••• •••••••••••
1 year to 5 years • •...•••..•.•.•......
After 5 years ••••••• ••••••• •••••••.••.
Obligations of states and political subdivisions:
Tax warrants and short· term note s and bills . .
All other •• •••• •.•• • ••••••••••••••••..••
Other bonds, corporate stocks, and securities:
Participation certiflcotes in Federal
agency loans . . .•....•..••..... .......
°
°
°
812,718
716,593
83,691
428,790
8,249
327,964
810,866
723,429
80,669
494,470
5,575
337,487
813,255
546,669
75,306
504,690
4,233
334,869
TOTAL ASSETS •••••••••.••••.•••••.•••• 10,153,537
10,209,827
9,561,457
8alances with banks in the United States •• ••••• . •
Balances with bonks in foreign countries • ••••..• .
Other asset~ .• •.
.... •...••....••.•••..... .. .
Total reserves held . ..•.••.••..
With Federal Re se rve Bank .• . .
Currency and coin .. ..... .. ..
Required re serves •. ........ ...
Excess reserves . ........ .... ..
Borrowings • ...............•..
Free reserves . ... .. . ......... .
8,646,929
Total demand deposits ••••••.•• •••••. ••• •••
8anks In the United States ••••• •••• .•••••.•
5,230,853
3,616,093
315,706
107,220
1,092,007
Foreign:
Governments, offlclal in stitutions, central
banks, international Institutions . .•. •..• .
Commercial banks . ..•.•....•..........
Certlfled and officers' checks, e tc .. ..... ....
Total time and savings deposits . ............ .
8,668,385
8,155,425
3,681,614
253,145
152,855
1,125,923
5,003,044
3,379,385
362,654
66,091
1,112,732
3,343
23,423
73,061
3,416,076
3,055
19,528
58,180
3,374,085
4,329
19,729
58,124
3,152,381
1,121,220
1,743,453
516,386
11,724
19,653
1,118,436
1,697,323
508,779
11,833
34,714
1,176,584
1,375,501
575,335
8,825
13,796
----5,294,300
Individual s, partnerships, and corporations:
Other time deposits •. ..... .... ....... . .
State s and politico I subdivisions . ...........
U.S. Government (including postal savings) •••
8anks in the United States ••••••••.••.•.•••
Foreign:
Governments, offlcial institutions, ce ntral
banks, international institutions . •... ... .
Commercial banks . .......•.....•......
674,736
627,125
47,6 11
671,285
3,451
214
3,237
625,632
580,354
45,278
620,349
5,283
89,157
-83,874
Total reservos held . .•........ •
With Fed eral Reserve Bank ....
Currency and coin .. .........
Required reservos . .. ..........
Excess rese rves . ... •.•......••
Borrowings • •.................
Free res erves . . . ...... . .....••
662,699
501,425
161,274
625,607
37,092
1,238
35,854
656,517
492,725
163,792
619,519
36,998
3, 174
33,824
640,682
489,002
151,680
604,836
35,846
10,072
25,774
1,347,2 80
1,139,025
208,255
1,305,450
41 ,830
2,095
39,735
1,331,253
1,119,850
211 ,403
1,290,804
40,449
3,388
37,061
1,266,314
1,069,356
196,958
1,225,185
41,129
99,229
-58, 100
ALL MEM8ER 8ANKS
Total res erves held . ........•.•
Currency and coin . .... .... ..
Required reserves . ...........•
Excess reserves . •• •........ ...
Borrowings . ......... . ...•..•.
Free reserves • ....... .. ... .. . .
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
===========================================================~~~
Nov. 29,
Item
1967
Total gold certlflcate reserves •..•.. .. . .. ....
Discounts for member bonks . •.. • .. .. • •. .•..
Other discounts and advances . .......•.....
U.S. Government securities . ....•....•••••..
Total earni ng assets .... . .... ........ . . .. . .
Member bank reserve deposits .... . . .....•..
Federal Reserve not es in actual circulation •.•• .
2,053,097
2,055,697
1,129,472
1,385,859
2,600
963
1,915,408°
° 1,916,371
1,1 26,677
1,353,603
(In millions of dollars)
Item
Oct . 25,
1967
Sept. 27,
1967
ASSETS
loans and discounts ••. .•.......••.......
U.S. Government obligations ... ••......•..
Other sec uriti es . .........•.. • ..•.•... •.
Resorves with Federal Roserve Bank ... •.• •.
Ca sh in vault . ....................... . .
Balances with banks in the United States •••.
Balances with banks in foreign countries o .. ..
Ca sh items in process of collection • ••....•.
Oth er assets e ..• ..• . ...... .••....•.....
9,115
2,5 19
2,622
1,1 27
234
1,188
8
921
425
9,086
2,521
2,562
1,118
236
1,148
9
972
430
TOTAL ASSETse •••..••••••••..••....
18,159
18,082
1,398
8,073
6,437
1,399
8,024
6,436
Other lIabllities e •....••..••••••.•..••••
Tolal capital accounls o •. . •• ..•.. .••.. •••
15,908
482
236
1,533
15,859
434
266
1,523
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSo •.••••.•.••..•.•••....
18,159
18,082
LIABILITIES AND CAPITAL ACCOUNTS
Demand deposits of banks . ...... ••....•.
Other demand deposits ••••.•• • • .•••.•. ••
800
1,540
Time d eposits ..•. ..........•...........
473,192
172,515
346,043
207,873
Borrowings . ......... ... ............ ...
Other lia bilities ••• ••• •.•••.• • .•.••.• •. • . • .. •
415,113
192,233
CAPITAL ACCOUNTS ••••.•.••••.•.•.••••••••
899,262
895,735
852,116
TOTAL LIABILITIES AND CAPITAL ACCOUNTS 10,153,537
10,209,827
9,561,457
2
1966
81,202
754
1,677,17 6
1,759,13 2
966,07 8
1,254,17 3
CONDITION STATISTICS OF ALL MEMBER BANKS
2,300
700
r - Revi.ed.
Nov. 30,
------------------------------------------------------------
2,800
840
Bills payable, rediscounts, and other
liabilities for borrowed money . .•..•......•.•
Oct. 25,
1967
------- ---- -------------------------345,008
393,114
532,392
Eleventh Federa l Reserve District
Total deposits •• •••• ••••••.••••• . •• •••.•• •••
Savings deposits • •• •.• .••••. • ••.• • .• ••
684,581
637,600
46,981
679,843
4,738
857
3,88 1
COUNTRY 8ANKS
L1A81L1TIES
Individuals, partnerships, and corporations ....
Stotes and political subdivisions • ....• . ....•
U.S. Government . . .....•................
Nov. 2,1966
(In thousands of dollars)
86,714
110,783
Reserves with Federal Reserve Bonk •••• .••......
Currency and coin . .••.•.••••...•....•.......
4 weeks ended
Oct. 4,1967
°
153,815
71,623
Cosh items in process of collection • •. ..... ..... .
4 weeks ended
580,587r
149,549
75,372
All other {including corporate stocks) •••.••••
4 weeks ended
Nov. 1, 1967
RESERVE CITY 8ANKS
With Federal Reserve 8ank • •.•
Real estate loans ••. .. . .........•..........
loans to domestic commercial banks .... . . .....
loans to foreign banks . ....... • . •• .•.. •• . .•
Consumer instalment loans ... .......•. • . . . ...
loans to foreign governments, official
institutions, central bonks, international
institutions •••.••........ . •••.. .... ••••• •
Other loans . ..••.....•... . ...••••••.•..•.
Treasury bills ••• ••• • •..•• • ••.•.•••••••••
Ite m
Total deposits •••••••.•..••.••.••.•• •
e-
Estimated.
-==
-
Oct. 26,
1966
8,623
2,273
2,224
1001
'225
1,05~
-
906
498
~
1,270
7,600
5,792
-
14,66~
43
251
1,463
-
~
~
BANK DEBITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thousand., seasonally adjusted)
DE81TS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Percont chango
Standa rd metropolitan
(Annuol~rate
statistica l area
basis)
ARIZONA. Tucson •••.• •••• ••.•• • .. •....•••.• • •..••••
LOUISIANA, Monroe ••••..••...••... •. ...• ..•...••..
Shreyeport • ••. . . •• .••. . .. .. . •... • ••..•••
NEW MEXICO, Roswell' •••. ••••.••.•••...•• ••• ••...•
TEXAS, Abilene ...................... . ..............
Amarillo .................... . . ..............
Austin . ................. . . ... .... . ..........
Boaumont·Port Arthur-Oronge .... ............ ..
Brownsyille-Harling en· San Benito . . .. •. ........ . .
Corpus Christi ........................ .... . ...
Corsicana ' ... ....... .... .. ............ .. .. . .
Dallas ........................... . ..........
EI Paso . • •.• ••••• .•••••.••.•••..• • ..•• •• . .••
Fort Worth ................... . .... ........ ··
Golyes ton -Texa s City ............. .. ........ ·•
Houston ••• • •• •.• •••• • ••. .••..••.•..•••.••..
Lare do ••.•••••••••••••.•.••...• •• .• • ..•..••
Lubbock • •••••••••..••..••••••• . •••.••......
McAllen-Pharr· Edinburg ................. . . . . . ..
Midland ... .. . ..•.••.••••••• .. ••..•••••.....
Odessa .. .. . . ................. ...... .. .. . · ..
San Angelo .••.•••.••••••• ••••••...••....•..
San Antonio .. . . .. ..... . .... ... . . ............
Texarkana (Texas-Arkansas) ....................
Tyler •••••••.•••• ••.•• . • ••••••• •••• • ..• • ..••
Waco ................ ..... ......... ... ·····
Wichita Falls .... .......... .. .............. ··
Total_27 centers .. ................... .. ............
$
4.934,640
2.0 15.700
5.869,536
680.964
1.681,116
4,333.584
5.173.788
5.746.080
1.448,628
4.391.232
345,132
79,356.2 16
5.655.408
15.956.496
2.060.292
73.391.3 16
640.980
3.998.928
1.435.560
1.789.428
1.347.624
979.188
12.457.440
1.290.792
1.645.032
2.388.264
2.045.160
Annual rate
of turnover
October 1967 from
October
1967
Se pte mber
1967
9
- 1
3
6
-3
5
6
3
40
26
5
5
9
-2
-10
5
4
6
27
9
4
9
1
1
-3
9
0
Octob er
1966
15
9
9
10
- 14
8
14
6
-2
9
3
19
18
12
15
19
10
12
10
14
7
13
7
23
3
-5
1
-3
1
12
5
1
5
8
14
9
9
10
12
13
1
12
2
- 2
4
5
20
4
6
-4
15
10
5
$243,058.524
10 months,
1967 from
1966
October 31.
1967
$ 168.911
10
8
10
1967
September
1967
Octob er
1966
29.8
25.8
26.0
19.9
17.8
31.5
24.2
25.6
21.0
22.7
12.1
44.9
28.1
29.7
20.8
33.6
19.9
25.4
16.2
14.4
21.5
16.6
23.1
21.9
19.2
21.4
18.3
27.7
26.6
25.4
18.9
18.9
30.1
23.6
25.2
16.4
18.5
11.2
42.4
26.0
30.8
23.7
32.6
19.1
24.7
13.2
13.4
20.4
15.6
23.2
21.6
20.2
19 .5
18.3
25.6
25.6
25.0
18.2
21.4
29.5
24.8
25.6
24.4
22.2
12.1
40.5
24.0
28.7
20.3
32.4
18.5
23.3
17.8
13.7
20.0
15.6
23.4
19.2
19.5
24.0
18.5
31.6
30.5
29.9
October
79.418
226.80 1
34.153
95.629
139.553
216.309
224,617
72.832
196.271
28.154
1,751 .256
202.348
541.778
100.3 13
2.201.269
33.128
157.199
88.654
125.297
62.461
59.919
546.782
59.384
86.848
110.584
112.635
----
$7.722.503
~ Depollts of IndlYlduals. portnershipl. and corporations and of Itotes and political ,ubdlylslon, .
.. County ba l is.
NOTE . _ Figures for 1966 hove been reyl led due to the ule of now lea.onol adjultment factors.
GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh Federal Reserve District
(AYerage. of dally flgures. In mililanI of dollars)
GROSS DEMAND DEPOSITS
BUILD ING PERMITS
=
VALUATION (Dollar amountl In thoul ands)
Percent change
Oct. 1967
-
10 mos.
1967
486
5.388
72
328
52
122
360
236
104
Corpul Christi
499
~ollal ...... :: 1.730
F Palo •••••••
495
d'rt Worth ....
600
H alveston . ••..
85
Lauston ••• • .• 2.041
Labedo .......
40
124
Mld~~Ck ••..••
94
Od nd .. ....
P ossa ...• •. .
72
sort Arthur • •..
70
Son Angelo • ••
63
Tan Antonio • •. 1.294
Wxarkana .•••
44
aco
273
Wlchlt~' F~il;: :
69
Talal_24 C,hes
" ••
_____
9.353
Area
Total
1965, Octob er •..
1966, Octob er •..
1967, May .•••..
8.814
8.847
8.833
8.968
9.195
9. 178
9.426
9.511
4.145
4.064
4.089
4.197
4.302
4.268
4.408
4.448
June .. ••..
from
NUM8ER
Oct.
1967
Date
Reserve
city bonks
July .......
10 months,
Oct.
1967
10 mos.
1967
Sopt.
1967
Oct.
1966
August ••• .
1967 from
1966
September.
October •.•
TIME DEPOSITS
Country
bonks
Total
city bonks
Country
banks
4.669
4.783
4,744
4.771
4.893
4.910
5.0 18
5.063
5.402
5.726
6.261
6.282
6.285
6.394
6.398
6.457
2.636
2.595
2.716
2.707
2.670
2.742
2.743
2.753
2.766
3.131
3.545
3.575
3,615
3.652
3.655
3.704
Reserve
ARIZONA
Tucson ••••••••
LOUISIANA
Monroe-West
Sh Monroe •••••
1
revoport •.. •
EXAS
~bllone .. .....
Amarillo ... • .•
8 u.tln ........
B~~~:~II~~::: :
2.230 $
21,302
7
68
-1
767
3.496
1.583
2.0 13
16.481
26.4 t6
246
- 13
-37
5
-1
9
510
1.357
3.78 1
1.543
659
3.920
18.436
4.612
6.241
947
20.609
309
1.347
830
908
778
699
12.114
420
3.023
692
296
1.484
5.181
1.586
t41
2.293
30.380
5.459
6.204
315
28.220
170
3.796
1.168
688
409
560
10.532
357
764
386
8,787 -51
163
18.074
95.203 -13
54
15.455
It
2.904
29.4 19 -62
249.756 -51
34
48.765
3
77.351
-5
9.892
10
354.338
3.80 1 -50
237
27.68 1
12.422
63
37
5.719
3.193
95
63
9.046
51
93.333
5t
3.440
15.295 -8 1
18.339 -78
-55
139
29
206
-38
14
185
73
99
1
4
315
-44
228
173
-38
-67
98
11
28
-80
-3 1
-42
44
17
-t4
3
56
2
15
-9
29
60
-49
-5
-47
-30
16
22
-38
45
39
-20
39
19
93.386
$
$106.2 15 $1.166.4 12
VALUE OF CONSTRUCTION CONTRACTS
(In million. of dollars)
January-Octobe r
Aroo and type
FIVE SOUTHWESTERN
STATES' . ....... . .......
Resid entia l building •....••
Nonresidential building ••• •
Nonbuildlng conl truction • • •
UNITED STATES ...... ......
Residential building •••••••
Nonresi dential bullding .. •.
Nonbulldlng construction •••
1
Octob or
1967
Se pte mber
1967
August
1967
1967
1966
486
195
173
11 8
5.053
1.887
1.874
1.292
445
163
133
150
4.695
1.741
1.786
1.169
506
195
197
114
5.104
1.912
1.847
1.345
4.688
1.715
1.694
1.279
44.810
16.468
17.085
11 .257
4.579r
1.627r
1.474
1.478
43.717r
15.920r
16,733
11.064
Ari zona, Lou isiana, Now M exico, Oklahoma, and Texas.
Revised.
r-
NOTE. - Details may not add to total. because of rounding.
SOURCE, F. W. Dodge Company.
3
CROP PRODUCTION
COTTON PRODUCTION
(In thousands of bushelsJ
TEXAS
Texas Crop Reporting Di stricts
(In thousands of bales -- 500 pounds gross weig htJ
FIVE SOUTHWESTERN STATES'
~
1967,
1967,
estimated
Average
estimated
Crop
Nov. 1
1966
1961-65
Nov. 1
1966
1961-65
Cotton ' ... . .•...
Corn .... . ......
Winter wheat ••..
2,800
18,122
53,216
6,644
1,178
325
25,400
353,132
150
3,498
356,250
4,336
702
35,000
3,182
19,008
72,652
17,640
2,750
544
21,210
311,696
712
3.585
403,200
4,451
780
26,000
4,544
26,305
63,065
19,488
4,968
386
17,524
236,60 1
921
2,878
221,994
2,755
840
38,200
4,055
26,494
153,812
11,46 1
17,722
909
47,435
4 19,632
150
9,249
583,390
7,779
5,039
104,000
4,54 1
26,593
178,5 16
24,368
20,984
1,342
42,398
362,428
712
8,844
624,606
7,977
4,87 1
71,300
6,555
37,720
167,575
28,523
26,390
1,234
33,722
274,468
921
7,808
400,034
5,704
4,760
94,190
Oats ••..•.••. • •
Barley .........
Rye .. .. ........
Rice ' ••. • .. .. .. .
Sorghum grain •..
Flaxseed . . . .. . .
Hay· ...........
Peanuts5 ••••• • ••
Irish potato es6 •••
~:c~~sr.~t.a.t~~~~.:
1967,
Average
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
In thousands of bales.
:) In thousands of bogs containing 100 pounds each.
I In thousands of ton s.
f5 In thousands of pounds.
6 In thousands of hundredweight.
1
!:
1967
a s percent of
ind icated
Area
Nov. 1
1966
1965
1966
High Plains •• .•..••..
High Plains •. ••. . •...
Plains ..•..•.•• • ....
Plains .• • .. . . ••.• • ..
10·N - South Texas Plains ••....••. • .
10·S - Lower Rio Grande Valley ••••..
240
1,020
200
240
15
265
20
40
135
25
55
95
115
20
315
260
1,085
177
338
18
484
29
42
127
27
95
13 4
82
33
25 1
558
1,693
28 1
402
21
469
34
58
194
57
108
168
20 1
35
389
92
94
113
71
83
55
69
95
106
93
58
71
140
61
125
State •••. •..•.•••... • ••.• . •• .• .
2,800
3,1 82
4,668
88
I ·N
I·S
2·N
2·S
3
4
-
Northern
Southern
Red Be d
Red Bed
- Western Cross Timb ers •.. .. ...
- Black and Grand Prairi es......
5-N - East Texas Timbered Plains .. ..
5·S - East Texas Timbered Plains .•..
6 - Trons-Pecos .. ... .... ... .....
7 - Edwards Plateau ... . .........
8-N - Southern Texas Prairies . .... . .
8-5 - South ern Te xa s Prairies . .. .• . .
9 - Coasta I Prairies ..............
SOURCE , U.S . Departmen t of Agriculture.
SOURCE, U.S. Department of Agriculture.
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(In thousands of barrolsJ
==============================
Percent chang e f~
CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amounts in thausandsJ
Area
January-September
1967
Area
Texas ....•..... . . ... •.••. . .
330,587
307,040
125,186
601,204
1,697,448
Total.....................
Uni ted States.. . • . . . . • • • . • •
$ 3,061,465
$29,09 1,577
Arizona .....•..............
louisiana . ... .........•.....
New Mexico • .... .•....••....
Oklahoma • •• ••.• • ••. • • • •.••
$
Percent
change
1966
339,405
292,987
129,061
637,888
1,886,276
-3
5
-3
-6
- 10
$ 3,285,617
$29,445,414
-7
-1
$
Septem ber
1967p
October
1966
September
1967
October
1966
3,086.4
612.0
1,426.6
142.8
93.6
811.4
315.8
174.7
5,261.3
8,838.2
3,189.4
605.1
1,491.8
146.3
94.7
851.5
321.8
183.2
5,535.4
9,229.8
2,965.7
552 .5
1,355.3
125.3
96.4
836.2
307.0
172.3
4,930.5
8,375.5
-3.2
1.1
-4.4
-2.4
- 1.2
-4.7
-1.9
-4.6
-5.0
-4.3
4. 1
10.8
5.3
14.0
_2.9
_3.0
2.9
1.4
6.7
5.5
---------------------------------------------------------------3.8
3,694.4
3,445.0
-3.2
ELEVENTH DISTRICT. ....... 3,576.9
Texas .......•.•........
Gulf Coost • ••. . ••. .• . .
West Texas .. ... .. . . ..
East Texas (proper) .....
Panhandle .•..•••.....
Rest of State . •••.. .. • .
Southeastern New Mexico ..
N orthern louisiana •.• .... .
OUTSIDE ELEVENTH DISTRICT
UNITED STATES ............
SOURCE , U.S. Department of Agriculture.
October
1967 p
p -
----
Preliminary .
SOURCES , American Petroleum In stitute.
U.S. Bureau of Mines.
Federal Reserve Bank of Dallas.
NONAGRICULTURAL EMPLOYMENT
(NDUSTRIAL PRODUCTION
Five Southwestern States'
(Seasonally adlusted indexos, 1957·59
Number of persons
Type of employment
Total nonagricultural
wage and salary workers ..
Manufacturing ...... . . ..•
Nonmanufacturing .•......
Mining ....... . .......
Construction ..... . .. . ..
Transportation and
public utilities ••.. . ...
Trade .. . ............ .
Finance .... . ... . . . •...
Service ...............
Government ...........
October
1967p
September
1967
Oct. 1967 from
Sept.
1967
------~~--------~---------------
O ct.
1966
5,722,400
1,046,800
4,675,600
219,900
377,800
5,710,900
1,042,800
4,668,100
223,200
376,600
5,558,700
1,020,900
4,537,800
233,100
385,500
0.2
.4
.2
-1.5
.3
2.9
2.5
3.0
-5.7
-2.0
435,400
1,327,500
280,500
855,100
1,179,400
438,900
1,327,900
281,600
855,700
1,164,200
423,600
1,292,500
271,900
812, 100
1,11 9, 100
- .8
.0
- .4
- .1
1.3
2.9
2.7
3.2
5.3
5.4
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
Preliminary.
r - Revised .
1
p -
SOURCE, State employment agencies.
4
October
1966r
= 100J
==========================================================~
Octob er
Percent change
~
149. 1r
167. 0r
184.4 r
155.4 r
115.9
186.9
159.0 r
162.0 r
169. 0r
153.0r
122. 0r
179.0r
---------------------------------------- ---p -- Pre l1mlnary.
r-
Revised.
SOURCES , Boa rd of Governors o f the Federal Reserve System.
Federal Reserve Bank of Dallas.
FEDERA IL RESERVE
BANK OF DAL IL AS
F.EDERAl RESERVE BANK
OF DAllAS
To the Member Banks in the
Eleventh Federal Reserve District:
The Statement of Condition and the earnings and expenses of the
Federal Reserve Bank of Dallas for the year 1967, with comparative
figures for 1966, are shown herein. Lists of the directors and officers of
the Bank and its branches as of January 1, 1968, are also included.
A review of economic and financial developments in the Nation
and the District during 1967 is being presented in the January 1968
Annual Report Issue of the Business Review of this Bank.
Additional copies of these publications may be obtained upon request
to the Research Department, Federal Reserve Bank of Dallas, 400 South
Akard Street (mailing address: Station K, Dallas, Texas 75222).
Sincerely yours,
WATROUS
President
H . TRONS
statement 01 condition
Dec. 31, 1967
Dec. 31, 1966
ASSETS
.. $ 318,182,506
70,247,329
$ 655,337,464
61,919,809
388,42 9,835
30,530,500
13,676,797
5,800,000
717,257,273
4 0 ,500,700
18,429,704
400,000
667,810,000
1,125,269,000
254,434,000
430,479,000
158,682,000
776,882,000
226,069,000
2,047,513,000
1,592,112,000
2,053,313,000
626,215,095
9,037,370
106,066,517
1,592,512,000
540,487,954
9,840,781
... ... .... . ............ $3 ,227,269,114
$2,981, 779,8~
Gold certificat e accou nt .
. . . .... . .. . .. . ... .
Redemption fund for Federal Reserve notes .. .
Total gold certificate reserves .. .
Federal Reserve notes of oth er Banks .
Other cash . . . .. .
Discounts and advances . . . . . .. ..... .. . . . .. . ... . ... . .
U.S. Government securities:
Bills .... . .
Certificates ... . ...... . .
Notes ...... ... ...... ... . . . . ...... . ..... .
Bonds .
Total U.S. Government securities ..
Total loans and securities ...
Cash items in process of collection ...... .
Bank premises
Other assets . . ..
TOTAL ASSETS
62,751,4~
LIABILITIES
Federal Reserve notes in actual circulation .
................ $1,432,827,205
Deposits:
Member bank - reserve accounts .
1,149,734,038
61,322,616
U.S. Treasurer - general account ...... . .. .. . . .. . ... . . . .
Foreign
8 ,120,000
Other ...
9,182,179
Total deposits
....... .
Deferred availability cash items .
Other liabilities ................ . . .
1,228,358,833
485,310,241
11,845,535
TOTAL LIABILITIES
3,158,341,814
$1,278,172,767
1,064,648,587
137,218,136
9,280,00 0
7,047,303
-----1,218,194,026
-----410,832,102
8152,959
,
2,915,351,854
CAPITAL ACCOUNTS
Capital paid in ....... . ... . ..... . ..
. . ..... . ..... . ... .
Surplus ..
. ... . ..... . . ............. . .. . ............ .
TOTAL CAPITAL ACCOUNTS .. . . . ......... .
TOTAL LIABILITIES AND CAPITAL ACCOUNTS .
34,463,650
34,463,650
68,927,300
. . . ..... . $3,227,269,114
-
33,214,000
33214,000
,
66428,000
$2,981:77~
====--
earningS and expenses
1967
1966
CURRENT EARNINGS
Discounts and advances , , ,
U.S. Government securities ,
,,$
175,641
$ 2,184,633
88,410,349
71,722,638
1,275,220
1,464,582
Foreign currencies
35,223
All other , . , " ' "
TOTAL CURRENT EARNINGS ,
90,085,795
35,484
75,217,975
11,197,900
10,437,270
625,596
524,400
1,032, 264
863,240
29,501
66,555
12,885,261
11,891,465
909,410
11,975,851
11,042,512
78,109,944
64,175,463
CURRENT EXPENSES
Current operating ex penses , , ,
Assessment for expenses of Board of Governors ,
Federal Reserve currency:
Original cost, including shipping charges , . ' , ,
, ... , ... ' ,
Cost of redemption, including shipping charges , '
-----
Total " . " " " . " " " , ., . , . , . " " " " ,
Less reimbursement for certain f iscal agency
and other expenses ,
,,,,,,,,
NET EXPENSES "
'"
. , , , , . , , . .. , , , , . , , . ' , , ' . '
848,953
PROFIT AND LOSS
Current net earnings ,
Additions to current net earnings:
Profit on sales of U.S. Government securities (net) , , , , , .. ' , ,
30,855
All other ""
83,126
76,588
113,981
76,588
, ,,, ,,,. ,'
, , , , ' , , , , , , , ... , . .
Total additions
-----
Deductions from current net earnings:
Loss on sales of U.S. Government securities (net) , , , . ,
All other , ,"" " ' . " "" ' , " ' , " ' , " " " "
Total deductions "" "
Net additions or deductions (-) ,
Net earnings before divid ends and payments
to U.S. Treasury , , , , ,
,,,' ,,,,,
, , , ' , , , , . , .. ' . . "
Dividends paid
" "',"',""
," ',
95,832
, .. , . . .. ,
, , .. .. , . . "
7,241
5,424
- - ----:5,424
103,073
108,557
-26,485
78,218,501
64,148,978
2,027,223
1,965,116
60,937,912
Payments to U.S. Treasury (interest on F.R. notes) , , ' . , .. ' . .. ,
Transferred to surplus . , . , , , , , . , .
, , , , .. , , , . , ,
74,941 ,628
1,249,650
Surplus, January 1 , , , , , , . , , . . . , , , "
33,214,000
31,968,050
SUrplus, December 31 , , , , , , . ' , , , ..... ' , , .. , ' , , , , . , , , , , , , $34,463,650
$33,214,000
'"
. , , . , ... , , . , . , "
1,245,950
directors
FEDERAL RESERVE BANK OF DALLAS
(Chairman and Federal R eserve A gel'll), Senior Vice President, Texas Instrument s
CARL J. THOMSEN
[ncorporated, D all as, Texas
MAX LEVINE
J. V. KELLY
MURRAY KYGER
CARL D. NEWTON
J. B. PERRY, JR.
KENNETH S. PITZER
RALPH A. PORTER
C. A. TATUM, JR.
(Deputy Chairman), Retired Chairman of the Board, Foley's, Houston, Texas
President, The Peoples National Bank of Belton, Belton, Texas
Chairman of the Board, The First Nationa.l Bank of Fort Worth, Fort Worth, Texas
President, Fox-Sta.nley Photo Products, Inc. , San Antonio, Texas
Real Estate Investments and Development, Lufkin, Texas
President and Professor of Chemistry, Rice UItiversity, Houston, Texas
President, The State National Bank of DeItison, Denison, Texas
President and Chief Executive Officer, Texas Utilities Company, Dallas, Texas
EL PASO BRANCH
OORDON W. FOSTER
ROBERT W. HEYER
ROBERT F. LOCKHART
C. ROBERT McNALLY, JR.
JOSEPH M. RAY
ARCHJE B. SCOTT
JOE B. SISLER
Vice President and Director, Farah M anufacturing Company, Inc., E I Paso, Texas
Director and Consultant, Southern Arizona Bank & Trust Company, Tucson, Arizona
President, The State National Bank of EI Paso, E I Paso, Texas
Rancher, Roswell, New Mexico
President, The University of Texas at E I Paso, E1 Paso, Texas
President, The Security State Bank of Pecos, Texas
President, The Clovis National Bank, Clovis, New Mexico
HOUSTON BRANCH
R. M. BUCKLEY
HENRY B. CLAY
A. G. McNEESE, JR.
OEO. T. MORSE, JR.
W. O. THORNELL
JOHN E. WHITMORE
M. STEELE WRIGHT, JR.
President and Director, Eastex Incorporated, Silsbee, Texas
President, First Bank & Trust, Bryan, Texas
Chairman of the Board, Bank of the Southwest National Association, Houston, Houston, Tex as
President and General Manager, Peden Iron & Steel Company, Houston, Texas
President, The First National Bank of Port Arthur, Port Arthur, Texas
President, Texas National Bank of Commerce of Houston , Houston, Texas
President and General Manager, Texas Farm Products Company, Nacogdoches, Texas
SAN ANTONio BRANCH
Veterinarian and Rancher, Brackettville, Texas
President, Corpus Christi Bank and Trust, Corpus Christi, Texas
President, The Frost National Bank of San Antonio, San Antonio, Texas
President, Union National Bank of Laredo, Laredo, Texas
General Manager and Partner, Knowlton's Creamery, San Antonio, Texas
Chairman of Department of General Business and Professor of Business Statist.ics,
The University of Texas, Austin, Texas
Chairman of the Board and President, State Bank and Trust Company, San Marcos, TexaS
W. A. BELCHER
JAMES T. DENTON, JR.
TOM C. FROST, JR .
RAY M. KECK, JR.
LLOYD M. KNOWLTON
FRANCIS B. MAY
J. R. THORNTON
FEDERAL ADVISORY COUNCIL MEMBER
ROBERT
H. STEWART, III
I
Chairman of the Board, First National Bank in Dallas, Dallas, Texas
ollicers
FEDERAL RESERVE BANK OF DALLAS
WATROUS H. IRONS,
P . E. COLDWELL,
President
First Vice President
Roy E. BOHN E, Vice President
JAM ES
L. CAUTHEN, Vice President
T.
IAMES
A.
E.
A. THAXTON, JR .,
Assistant V ice President
W . VORL OP, JR .,
Assistant Vice President
1. Z.
JAM ES
Vice PresideJlt
PARKER,
T. W. PLANT,
Assistant Vice President
Assistallt Vice President
Vice Presiden.t
GR EEN,
CARL H. MOOR E,
ROBINSON, JR.,
E.
1. L. COOK, Vice Presidellt
RALPH
E.
TONY J. SALVAGGIO,
HARRY
Vice Presidellt
an.d Secretary of the Board
ROU ERT H . BOYKIN ,
T.
Vice President
W. M . PRITCHETT, Vice President
Vice President
THOMAS R. SULLIVAN,
SPRENG,
Chief Examiller
Data Processing Officer
Planning Officer
SIDNEY J. ALEXANDER, JR.,
Assistant Cashier
ROD E RT A. BROWN ,
Assistant Cashier
D . INGRAM, Assistant Cashier
J ESSE D . SANDERS, Assistant Cashier
G EORGE C. COCHRAN, IIT, Assistant COllnsel
RICHARD
V ice President
ARTHUR
H.
LANG,
General Auditor
GEORGE
F.
RUDY ,
General Counsel
LEON W. COWAN, A.~sistallt
Director of R esearch
RUSSELL,
J ERRY P. WILSON,
Vice President and Cashier
FREDRIC W . R EED,
E.
ROW E,
O.
an.d Assistallt Secretary of th e Board
V ice Presidellt
H ERMAN B . HUDSON,
Assistallt General Auditor
EL PASO BRANCH
FREDRIC W. R EED,
FORREST E. COLEMAN,
Vice President in Charge
Cashier
THOMAS
H.
ROB ERTSON ,
Assistant Cashier
HOUSTON BRANCH
J. L.
COOK,
V ice President in Charge
RASCO R . STORY,
Cashier
Roy E. MAL EY, Assistallt Cashier
R.
J . S CHOEN HOFF, A'ssislant Cashier
SAN ANTON 10 BRANCH
CARL H . MOOR E,
FREDERICK
TH OMAS C. COLE,
Assistallt Cashier
Vice President in Charge
J.
SCHMID,
Cashier
ROB E RT W. SCHULTZ,
Assistant Cashier
@FedFRASER